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Unspent home funds creating a ‘perverse incentive’

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The combination of unspent home care funds and a competitive service market has created a “perverse incentive” for providers to spend the money inappropriately, the Royal Commission has heard.

The latest figures show that home care providers are currently accumulating about $6,000 of unspent funds per client a year, leaving them with up to $400 million laying idle.

The topic of unspent funds was raised during evidence before the Royal Commission into Aged Care Quality and Safety last week.

Nick Mersiades, director of Catholic Health Australia and deputy chair of ACFI, told the commission the number of home care packages is expected to increase from about 90,000 to 150,000 over the next three years.

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Source:
Judy Skatssoon, 2019, Australian Ageing Agenda (https://www.australianageingagenda.com.au/about/)

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